As Target and Toys R Us Partner Up, Is It a Sign of More to Come?
On Tuesday, general merchandise chain Target (NYSE: TGT) and the revived Toys R Us toy-store brand made a compelling but peculiar announcement: The former would be handling the latter's online shopping and fulfillment duties, at least until further notice.
It's odd simply because the two are, in the end, competitors. Leveraging the well-loved Toys R Us name to help an established rival expand its own customer base is a bit counterintuitive. GlobalData's managing director and in-house retail expert Neil Saunders assessed it best, saying "It's a neat solution but not an ideal solution," because the owners of the Toys R Us brand are "ceding control to another competitor."
More may be taking shape here than an awkward relationship, however. A handful of industry analysts suspect this partnership could be an omen of a bigger play by Target, if not a precursor to an acquisition.
Source Fool.com